Force Protection Video Equipment Corp. (OTC: FPVD), DBA BIGtoken, the first privacy focused, opt-in data marketplace where people can own and monetize their data, today reported its financial results for the quarter ended June 30, 2021.
“We are very pleased with our strong financial results for the period ending June 30, 2021, and excited about the market’s increasing demand for ethically sourced, permissioned data and authenticated identities,” says George Stella, president of BIGtoken. “It’s amazing to see how the market is now catching up to the vision we established three years ago—providing brands the ability to create their own first-party data and do so in a fast, fair, and ethical way.”
Stella added, “And to quote IAB UK head of adtech Tina Lakhani in a recent whitepaper, ‘Tracking used to be the default, and privacy was optional. We’re now moving towards a world where privacy is the default and tracking is optional.’”
BIGtoken is at the forefront of an era where:
- Having direct, one-to-one relationships with consumers is key to creating accurate, verified, audiences.
- Brands want ethically sourced data (data that’s consented by users and compliant with privacy laws and regulations).
- Consumers want control of data usage and access to data monetization.
Business Highlights
During the second quarter of 2021, the Company achieved the following business milestones:
- The Company evaluated data from a test of a change to its user payment policy and continued weekly payouts to its users. While resulting in higher expenses, this change importantly has succeeded in higher number of users, as well as increased user engagement.
- Between March and April 2021, we sold $4,809,827 of equity securities to accredited investors, resulting in the issuance of 48,098 shares of Series B Preferred Stock, which has now been subsequently converted into Common Stock. The Company invested in marketing tests for the purposes of user acquisition, resulting in accelerated growth of users, as well as intelligence about optimization of marketing spend across channels.
- We advanced our proprietary fraud detection techniques to protect the integrity of our user payouts.
- We expanded our sales force capabilities to include selling BIGtoken services to new industry verticals and markets.
Financial Results for the Quarter Ended June 30, 2021
All of the below comparisons to periods prior to the completion of the share exchange transaction are based on carve-out financials and allocation of expenses agreed upon by the Company and SRAX (former company parent) and may not be indicative of any future financial performance of the Company.
- Revenues: Revenues for the quarter ending June 30, 2021 increased to $849,000 from $377,000 in the comparable period in 2020, a 125% increase. Revenues for the six-month period ended June 30, 2021, increased to $1,704,000 from $570,000 in the comparable period in 2020, a 199% increase. These increases are primarily driven by the increased adoption by large advertising clients of the Company’s media sales services.
- Gross Profit Margin: Our gross profit margin for the three-month period-ended June 30, 2021, increased to 72% as compared to 56% in 2020. Our gross profit margin for the six-month period-ended June 30, 2021, increased to 70% as compared to 54% in 2020. The increase is driven by optimized usage of third-party services.
- Operating Expenses: Operating costs for the three-month period-ended June 30, 2021, increased to $2,599,000, or by 3%, as compared to $2,523,000 for the comparable period in 2020. Our operating costs for the six-month period-ended June 30, 2021, decreased to $4,702,000, or by 17% as, compared to $5,669,000 for the comparable period in 2020. The overall decrease in operating expenses were attributable to the following: to the reductions in staffing related and other general administrative expenses attributable to our legacy media verticals, and the reduction of our BIGtoken point liability. We experienced an increase in one-time professional services fees for legal services related to our reverse merger of $300,000 primarily during the second quarter.
- Operating Loss: Loss from operations for the three-month period-ended June 30, 2021, decreased to $1,985.000, from $2,310,000 for the comparable period in 2020.
Cautionary Statement Regarding Forward Looking Information:
This news release contains “forward-looking statements” made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Force Protection Video Equipment Corp.’s periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC), and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.
| For the Six Months Ended June 30, | Change | ||||||||||||
|
2021 |
|
2020 |
|
Dollar |
|
Percentage |
|||||||
| Revenues |
$ |
1,704,000 |
|
$ |
570,000 |
|
1,134,000 |
198.95 |
% |
||||
| Cost of revenues |
508,000 |
|
262,000 |
|
246,000 |
|
93.89 |
% |
|||||
| Gross profit |
1,196,000 |
|
308,000 |
|
888,000 |
|
288.31 |
% |
|||||
| Employee related costs |
1,702,000 |
|
3,076,000 |
|
(1,374,000 |
) |
-44.67 |
% |
|||||
| Marketing and selling expenses |
489,000 |
|
464,000 |
|
25,000 |
|
5.39 |
% |
|||||
| Platform Costs |
167,000 |
|
252,000 |
|
(85,000 |
) |
-33.73 |
% |
|||||
| Depreciation and amortization |
281,000 |
|
506,000 |
|
(225,000 |
) |
-44.47 |
% |
|||||
| General selling general and administrative |
2,063,000 |
|
1,371,000 |
|
692,000 |
|
50.47 |
% |
|||||
|
4,702,000 |
|
5,669,000 |
|
(967,000 |
) |
-17.06 |
% |
||||||
| Loss from operations |
(3,506,000 |
) |
(5,361,000 |
) |
1,855,000 |
|
-34.60 |
% |
|||||
| Other income (expense) | |||||||||||||
| Financing Costs |
– |
|
(1,283,000 |
) |
1,283,000 |
|
-100.00 |
% |
|||||
| Change in fair value of derivative liabilities |
– |
|
255,000 |
|
(255,000 |
) |
-100.00 |
% |
|||||
| Exchange Gain (loss) |
– |
|
302,000 |
|
(302,000 |
) |
-100.00 |
% |
|||||
| Total other income (loss) |
– |
|
(726,000 |
) |
726,000 |
|
-100.00 |
% |
|||||
| Loss before provision for income taxes |
(3,506,000 |
) |
(6,087,000 |
) |
2,581,000 |
|
-42.40 |
% |
|||||
|
0 |
|
100.00 |
% |
||||||||||
| Provision for income benefit |
– |
|
– |
|
100.00 |
% |
|||||||
| Net income (loss) |
$ |
(3,506,000 |
) |
$ |
(6,087,000 |
) |
2,581,000 |
|
-42.40 |
% |
|||
| Deemed dividend on series B convertible preferred stock |
(5,860,000 |
) |
– |
|
(5,860,000 |
) |
100.00 |
% |
|||||
| Loss attributable to common stockholders |
(9,366,000 |
) |
(6,087,000 |
) |
(3,279,000 |
) |
53.87 |
% |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210818005159/en/